AMOTECH, an electronic parts maker, is expected to benefit from the wireless recharging business. This expectation stems from the fact that more smartphones and wearable products will likely apply AMOTECH's wireless charging antenna module.

AMOTECH supplies '3 Combo' antenna modules to Galaxy S10 series of Samsung Electronics. The Galaxy S10 series supports all three of wireless power charging (WPC), Near Field Communication (NFC), and electronic payment (MST). AMOTECH expects to recover its earnings as the sales trend of Galaxy S10 series released this year has been positive, unlike last year's Galaxy S9. Last year, AMOTECH's growth was negative due to the sluggish smartphone sales of Samsung Electronics and LG Electronics. AMOTECH also acknowledged, "The sales and operating profits decreased due to the weak IT and mobile front industry's business conditions."

Another element of positive expectation is the trend of functional enhancement of low-end smartphones. As multi-cameras spread from flagship smartphones to low-end products, there is a possibility of wireless charging functions being popularized. Lee Gyu-Ha, a researcher at NH Investment & Securities said, "The response toward wireless battery sharing function (applied to the Galaxy S10) has been more positive than expected. We are hopeful that wireless charging modules will spread to mid-range products from the second half of this year at the earliest." Because the antenna module business accounts for about half of AMOTECH's sales, the earnings can improve significantly if the expected occurs in fact. AMOTECH emphasizes that cost reduction is possible because they use the proprietarily developed powder, ceramic raw material for antenna parts.

One industry official said, "Before, mid- to low-end smartphones with a 2-combo with one function removed from the 3-combo (WPC, NFC, MST), had been released. Installing the 3-combo is not technically difficult." This can be interpreted to mean that AMOTECH's sales may increase due to the installation of 3-combo that follows the trend of strengthening of mid- to low-priced product functions.

Wireless charging products that AMOTECH provides to wearables are expected to double compared to the last year. AMOTECH provides to domestic customers a 2-combo antenna module that is installed with WPC and NFC.

Researcher Lee Gyu-Ha predicts, "The wearable products installed with AMOTECH's 2-combo modules will increase by 107.5% to 11 million units compared to the last year." The relevant sales have been estimated to reach 28 billion won this year from 13 billion won of last year. AMOTECH officials, without disclosing specific figures, said, "mass production of products is in progress (as planned)." In addition, it has been reported that AMOTECH is discussing with US companies to supply wireless charging modules for smartphones.

Security firms have estimated AMOTECH's earnings this year to be 296.0 billion won in sales and 24.6 billion won in operating profit. This is a 16.8% and 117.7% increase compared to last year, respectively. Last year, due to the weak smartphone market, the company's sales and operating profit plummeted 19.6% and 72.4%, respectively.

Founded in 1994, AMOTECH is headquartered in Incheon. In 2003, it was listed on the KOSDAQ. AMOTECH has three divisions: ceramic chip parts, antenna parts, and electric parts (BLDC motors) divisions. Antenna parts business accounts for half of the total sales, and, recently, the portion of sales of electric parts is increasing.